Very little debt to repay and plenty of cash on hand, so it is hard to shake.
Metrics · D/E ~43% · Current Ratio 2.23
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 20.3 · P/B 5.3
💡Highly profitable (38% op. margin, 30% ROE) with low debt (0.43x D/E). At 20.3x P/E (16.2x fwd) it is cheap for big tech, but AI spend is pressing on profits.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: Company filings, TradingView, S&P Global (margins, debt, liquidity, P/B are TTM), as of 2026-07-30
Business Summary · Key Value Metrics
Digital advertising built on its Family of Apps — Facebook, Instagram, WhatsApp, Messenger, and Threads — plus VR/AR (Reality Labs) and AI infrastructure. FY2025 revenue $201.0B and operating income $83.3B (41.4% operating margin). About 98% of revenue comes from advertising.
Combined daily active people (DAP) across Facebook, Instagram, WhatsApp, Messenger, and Threads reached about 3.5 billion in Q4 2025 (up 5% YoY), forming the world's largest network effect. Ad revenue was $196.2B in 2025, about 98% of total revenue, and vast first-party user data plus AI recommendation and targeting entrench ad efficiency. Family of Apps operating income was roughly $102.5B in 2025 (source: company IR, Q4 2025 results).
Network Effect
About 3.5 billion daily users across the Family of Apps. The larger the network, the greater the advertising and social value — driving lock-in.
Ad AI and Data
First-party user data plus AI recommendation and targeting. Ad revenue of $196B/yr, about 98% of total revenue.
Economies of Scale
A massive revenue base funds large-scale reinvestment in AI infrastructure and R&D — a barrier to entry.
Multi-Platform
FB, IG, WhatsApp, Messenger, and Threads capture user time across platforms. Threads has about 400 million MAU.
10-Year Financial Trends
Operating income recovered from a 2022 low of $28.9B (24.8% margin) to $69.4B (42.2%) in 2024 and $83.3B (41.4%) in 2025, with a 9-year operating-income CAGR of +23.5%, close to the revenue CAGR (+24.7%). In 2022 net income plunged 41% on an advertising slowdown and iOS policy changes, then rebounded in 2023–24 on ad recovery and cost discipline. Reality Labs, however, posted a 2025 operating loss of about $19.2B ($84B cumulative since 2020) (source: SEC EDGAR 10-K, company IR). Q2 2026 (Jul 29): revenue $60.8B (+28.0%) but EPS -13.4% to $6.18 (TTM $26.54); AI leases $279B, +53% q/q.
10-Year Growth
Revenue$201B · CAGR +24.7%
Operating Income$83.3B · CAGR +23.6%
EPS$23.49 · CAGR +23.6%
10-Year Valuation
P/E (year-end)27.5x · avg 25.6x
ROE30.9% · avg 26.3%
Operating Margin41.4% · avg 39.4%
📊 Annual Data Table (META) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2016
27.6
12.4
3.49
33
19.8
45
2017
40.7
20.2
5.39
32.7
23.9
49.7
2018
55.8
24.9
7.57
17.3
27.9
44.6
2019
70.7
24
6.43
31.8
20
33.9
2020
86
32.7
10.09
27.1
25.4
38
2021
117.9
46.8
13.77
24.4
31.1
39.6
2022
116.6
28.9
8.59
14
18.5
24.8
2023
134.9
46.8
14.87
23.8
28
34.7
2024
164.5
69.4
23.86
24.5
37.1
42.2
2025
201
83.3
23.49
27.5
30.9
41.4
— = no data for that year/metric (P/E omitted before EPS turned positive)
9-Year CAGR: Revenue +24.7% · Operating Income +23.5% · Net Income +21.8% · EPS +23.6%
Source: SEC EDGAR (10-K, 8-K), company IR, stockanalysis. Revenue and operating income are on a fiscal-year (December year-end) basis. EPS is diluted (Meta has never split its stock, so no split adjustment is needed). P/E is fiscal year-end price ÷ diluted EPS. ROE is on an average-equity basis, so it differs slightly from the latest TTM figure (29.9%). The 2019 dip in operating margin reflects a one-time FTC settlement (about $5 billion).
Mega-Cap Value Metric Comparison
Among its peers, META's trailing P/E of 20.3 remains lower than GOOGL's despite the recent rally, while its 38.1% operating margin ranks near the top. Revenue growth (+26.2%) is fast among the three ad players. Snap (SNAP) swings between losses and slim profits, leaving a wide gap in scale and profitability (P/E, ROE, margin = TTM; revenue growth = TTM YoY; source: TradingView, company filings).
Metric
★ META
GOOGL
SNAP
P/E (TTM)
20.3
28.8
Loss~breakeven
ROE
29.9%
38.9%
Negative
Operating Margin
38.1%
33.6%
Single digits
Revenue YoY Growth
+26.2%
+22%
+10% range
P/E, ROE, operating margin = TTM; revenue growth = TTM YoY · Source: TradingView, company filings, as of 2026-07-01. SNAP is shown as a range given its large swings between quarterly profits and losses.
Key Risk Factors (from 10-K)
●
Surging AI / Data-Center CapEx— AI infrastructure CapEx is surging to $65B+ per year in 2025–26, pressuring near-term free cash flow (FCF). The lag before monetization is the risk.Source: Company IR, earnings calls
●
Reality Labs Cumulative Losses— The VR/AR segment (Reality Labs) posted an operating loss of about $19.2B in 2025 and roughly $84B cumulatively over 2020–2025. The timing of any turn to profit is uncertain.Source: Company IR, segment filings
●
Ad-Cycle Sensitivity and Policy Changes— About 98% of revenue is advertising, so results can swing sharply with economic slowdowns and platform privacy policy changes (e.g., iOS).Source: Company 10-K Risk Factors
●
Regulation and Antitrust— Ongoing platform regulatory pressure, including the U.S. FTC antitrust suit and the EU Digital Markets Act (DMA).Source: Company 10-K Risk Factors
●
User Demographics and Competition— Younger users may shift to rival platforms like TikTok, and it competes with Google and Amazon in advertising.Source: Company 10-K Risk Factors
✦ ValueCrab Dashboard PreviewMETA $539.03 -7.95% · as of 2026-07-30
Q. What are Meta's (META) key value-investing metrics?P/E (TTM) 20.3 (forward about 18.6), ROE 29.9%, operating margin 38.1%, net margin 29.8%, a 9-year revenue CAGR of +24.7%, and a 9-year operating-income CAGR of +23.5% (source: company IR, SEC, TradingView, as of 2026-07-01).
Q. What is the analyst price-target consensus for Meta?The average target across 62 analysts is $778.68. This is an external consensus, not our own estimate. That is +44.5% above the $539.03 close. Source: stockanalysis, 2026-07-30.
Q. Is a forward P/E of 18.6x cheap?On the facts alone, the trailing P/E is 20.3x and the forward is about 18.6x; after the recent rally and downward analyst EPS revisions, it is no longer below the big-tech average. Rising AI CapEx and Reality Labs losses could affect future earnings, so we do not offer a definitive judgment.
Q. Is Reality Labs (VR/AR) losing money?Yes. The Reality Labs segment posted an operating loss of about $19.2B in 2025 and roughly $84B cumulatively over 2020–2025. By contrast, the advertising-driven Family of Apps segment earned about $102.5B in operating income in 2025, driving the group's total profit (source: company IR).
Q. Who are Meta's main competitors?In digital advertising, Google (GOOGL) and Amazon; in social and video, TikTok (ByteDance), Snap (SNAP), and YouTube.